The new “mid-rate” 30 per cent tax set out in the manifesto would apply to people earning annual salaries between £45,300 and £55,000 by 2020.

Only taxpayers earning £55,000 or more a year would pay income tax at 40 per cent.

The band changes could be worth up to £1,150 a year for some taxpayers.

Ukip also plans to increase the transferable tax allowance for married couples and civil partners by almost £500 to £1,500 for households where one partner stays at home to bring up children.

The tax proposals come on top of a pledge announced by Ukip earlier this year to abolish inheritance tax altogether, at a cost to the Treasury of around £6billion a year by 2020.

Ukip estimates that the manifesto proposals, which have been audited by independent financial experts, will cost around £18billion a year by the end of the next Parliament. To provide cash for the tax cuts, Ukip, which wants an in-out referendum on EU membership as soon as possible, plans to scrap Britain’s annual contribution to Brussels. It also intends to slash spending on overseas aid, to end extra public spending for Scotland and to axe projects such as the HS2 high-speed rail link from London to the Midlands and the North.

Ukip economics spokesman Patrick O’Flynn said yesterday: “We believe in letting people keep more of the money that they earn. Our tax and spending projections have been rigorously assessed and approved by an independent body, so do not let anyone tell you that these tax cuts are not affordable.”

The Ukip leader will outline radical plans for slashing the tax burden including sweeping income tax cuts for low and middle-income households.

Other proposals in the anti-Brussels party’s general election manifesto to be unveiled today include curbing mass immigration, slashing foreign aid and spending more on Britain’s Armed Forces.

The party plan will detail how a series of public spending reductions could provide savings to wipe out the Treasury’s deficit and deliver tax cuts worth £18billion a year by 2020.

“For the first time in 100 years, there is real change on the horizon,” Mr Farage will claim.

Key tax proposals in the document include taking workers on the minimum wage out of income tax altogether by raising the income tax personal allowance to at least £13,000.

Millions of low-income earners could gain up to £500 a year under the proposal, which goes beyond a Tory pledge to take minimum wage earners working up to 30 hours a week out of the income tax net.

Ukip will also propose a new 30 per cent income tax band for many middle-income earners currently paying the 40 per cent higher rate.

The new “mid-rate” 30 per cent tax set out in the manifesto would apply to people earning annual salaries between £45,300 and £55,000 by 2020.

Only taxpayers earning £55,000 or more a year would pay income tax at 40 per cent.

The band changes could be worth up to £1,150 a year for some taxpayers.

Ukip also plans to increase the transferable tax allowance for married couples and civil partners by almost £500 to £1,500 for households where one partner stays at home to bring up children.

The tax proposals come on top of a pledge announced by Ukip earlier this year to abolish inheritance tax altogether, at a cost to the Treasury of around £6billion a year by 2020.

Ukip estimates that the manifesto proposals, which have been audited by independent financial experts, will cost around £18billion a year by the end of the next Parliament. To provide cash for the tax cuts, Ukip, which wants an in-out referendum on EU membership as soon as possible, plans to scrap Britain’s annual contribution to Brussels. It also intends to slash spending on overseas aid, to end extra public spending for Scotland and to axe projects such as the HS2 high-speed rail link from London to the Midlands and the North.

Ukip economics spokesman Patrick O’Flynn said yesterday: “We believe in letting people keep more of the money that they earn. Our tax and spending projections have been rigorously assessed and approved by an independent body, so do not let anyone tell you that these tax cuts are not affordable.”

PA

Nigel Farage has asked the public to believe in change

Full details of Ukip’s proposals for drastically cutting immigration with an Australian-style points system to block unskilled migration will be set out in the manifesto, being launched in a key Ukip target constituency in Essex today.

Ukip will also promise to spend more than the Tories or Labour on defence, meeting the agreed Nato target of spending two per cent of national income a year.

Full details of Ukip’s proposals for drastically cutting immigration with an Australian-style points system to block unskilled migration will be set out in the manifesto, being launched in a key Ukip target constituency in Essex today.

Ukip will also promise to spend more than the Tories or Labour on defence, meeting the agreed Nato target of spending two per cent of national income a year.

PA

Farage's speech will also highlight changes to migration, jobs, defence, amongst other areas

Other policies to be announced include an extra six thousand additional jobs spread between the police service, the prison service and the Border Agency for Armed Service veterans. Business rates would be cut for small firms. And Ukip plan to remove stamp duty on the first £250,000 paid for new homes built on brownfield sites.

In the introduction to the Ukip manifesto, Mr Farage will say: “For the first time in 100 years, there is real change on the horizon. All you have to do is vote for it.

“In our manifesto, launched today, you will find serious, fully-costed policies that reflect what Ukip is all about; believing in our country.

“On the major issues of the day – immigration, the economy, our health service and living standards – the establishment parties have repeatedly and knowingly raised the expectations of the public, only to let us down, time and time again.

“Now, at last, there is something to vote for, if you believe in Britain.”

Other policies to be announced include an extra six thousand additional jobs spread between the police service, the prison service and the Border Agency for Armed Service veterans. Business rates would be cut for small firms. And Ukip plan to remove stamp duty on the first £250,000 paid for new homes built on brownfield sites.

In the introduction to the Ukip manifesto, Mr Farage will say: “For the first time in 100 years, there is real change on the horizon. All you have to do is vote for it.

“In our manifesto, launched today, you will find serious, fully-costed policies that reflect what Ukip is all about; believing in our country.

“On the major issues of the day – immigration, the economy, our health service and living standards – the establishment parties have repeatedly and knowingly raised the expectations of the public, only to let us down, time and time again.

“Now, at last, there is something to vote for, if you believe in Britain.”